It's carnage out there in crypto land! What's going on?
Just about every virtual currency out there is seeing red right now.
Here is a list of the top handful of cryptos by market cap:
As you can see they are all red.
It doesn't get any better when you scroll down either. When scrolling down the list of the top 100 cryptos by market cap, only 3 of them are currently in the green.
That means roughly 97% of the crypto space is seeing red right now.
What gives?
Well there are a couple possibilities in my opinion.
First you had the flash crash the other day where the price of Ether crashed from around $300 all the way down to $.10 within a matter of minutes. The price recovered quite rapidly but the damage psychologically was already done.
Then you have the uncertainly surrounding bitcoin and what is going to happen with Segwit and on August 1st. Some are claiming the chain could be split into 2 separate chains. However likely that may or may not be, the uncertainty around it is causing some people to likely take chips off the table.
Then last night there was the rumor that the co-founder of Ethereum had suddenly passed away. It was reported lats night that Vitalik Buterin, the co-founder of Ethereum had died in a car accident that injured 5 and claimed the lives of 2, including him.
Buterin quickly put those rumors to rest using blockchain (ironically), but again the fear and uncertainty has already crept in.
Basically in my opinion we are seeing the results of people's confidence in the space being shaken, and when many are sitting on large profits, these kinds of things happen.
What's next?
Well for one I want to see how long this all lasts.
If this is all mostly just fear and uncertainty around a flash crash and a (rumored) untimely death of a co-founder, then it could be over just as quickly as it all started once some confidence is restored.
If it is mostly over the fear of what is to come with Bitcoin, then it may last a while longer yet as we inch ever closer to those important dates and headlines whip the price around from day to day until a definitive outcome is known.
Either way, the fact that Coinbase has come out and said they will reimburse those that experienced losses from stop losses being hit during the flash crash of Ether, and also the co-founder of Ether verifying he is in fact alive and well should go a long ways in helping restore some confidence.
Confidence can be a tricky things in markets though, once it's shaken it is tough to restore in the very short term.
My thoughts
For me personally, I would not be surprised to see prices across the board come in a bit more.
Then as confidence is restored and a lot of these exchanges continue to make improvements both in their technology and in their customer service abilities, and as we get past some of the uncertainty surrounding bitcoin in the coming months, I fully expect to see the space rebound and continue upon it's upward trajectory.
Which means, I am using these drops as buying opportunities. :)
Stay informed my friends!
Sources:
https://techcrunch.com/2017/06/24/coinbase-is-reimbursing-losses-caused-by-the-ethereum-flash-crash/
http://www.zerohedge.com/news/2017-06-25/its-virtual-bloodbath-cryptocurrency-carnage-continues
Image Sources:
https://bit-media.org/2016/06/
http://mad-intelligence.com/mongolias-new-government-must-move-quickly-to-restore-confidence/
Follow me: @jrcornel
I say again: Great time to buy!!!
Did you buy anything yet?
Thanks for another thoughtful post. These are great opportunities for new money entering the space. They'll ride the next wave up and more new money will take us to new highs. Whooohooo!!!!
buy at the dips!
BTFD!
I'll be ready for next wave.
Yes, I was looking at it today and wanted to buy them all lol!! 0.10 ETH the other day, OH MY! I must have been sleeping :)
I agree that it's a buying opportunity if you have USD sitting around. Problem is most people diversify within crypto. When everything dips then how can you buy more?
Im sitting with the same problem man, but what is going on with bitcoin plus though?
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I came across this issue last minor dip. I use bitShares to do some of my trading for the coins that I can trade on it. It has a really nice USD derivative similar to USD Tether (USDT) called bitUSD. I realized next time my portfolio went up too fast too quick, and I put converted some of my crypto holdings into bitUSD which stays at 1 USD in value when converted to bitShares (BTS). Then when the markets dipped again, I could instantly convert my bitUSD to BTC or BTS and convert to other altcoins from there. Also, the bitShares exchange is really nice because it eliminates a lot of the trust issues users have with exchanges as it's a decentralized exchange and the fees per trade is a really cheap flat fee:
Check it out if you're looking for a stable store of value when the crypto markets are especially volatile. BitShares also offers other derivatives such as bitCNY, bitEUR, bitGOLD and bitSILVER which can be very helpful in diversifying and keeping value. Happy trading!
By not having your whole net into crypto ? It's rule #1
Don't have it all in crypto by any means. But what I have allocated to crypto is in crypto. Not going to sell stocks or real estate to buy more crypto. Just saying that since majority of crypto is down, there are limited options.
It is unfortunate . I wouldn't sell. I would never go with the flow of such an uneducated market, but against it . They sell you buy , they buy u sell .
Bang on. Diversification across ALL asset classes is key. Furthermore, keeping liquid cash back will ensure you can take maximum advangate of uncertain times.
True....keeping liquid cash on hand is the tough part when crypto, real estate, and stocks are all going up! Need more discipline I suppose.
Spot on! It's summer, time to spend some time away from the keyboard and catch up some with some vitamin D replenishment. Still p***ed at poloniex for tying up my STEEM though.
I agree with you 1000% @jrcornel....I think because of this flash crash scary with Etheruem we are going to see a pull back on cryptos.
This is going to be short lived, meaning A GREAT BUYING OPPORTUNITY.
^^^UPVOTED^^^
Oh my god! Now I know why ETH keeping dropping! How do you find the new that the co- founder of ETH had pass away? It is hard to find new if the coins but sometimes it seems like every one know the news except me! I feel uncomfortable! Do you know where can I find the news?
Hey @jrcornel
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It's happening every week since Bitcoin had a rise. Imo is not nothing to worry about. Hodl your currencies and don't fall for this market prices manipulation by the exchange markets.
I've read somewhere thorough analysis of how exchange markets are manipulating the price.
And look at this now SBD is higher than Steem. Poloniex not allowing d/w. Everything seems like a scam for somebody to earn some nice profits.
I agree!
Look at the flash Crash of gold today. Coincidence? No way! Remember Gold&silver as well as Crypto are enemy number 1 for central banks...
@buildyourdreams yes, it's just a manipulation. Cryptos are going to put banks out of work.
I also agree they are trying to scare people out for cryptos and precious metals are there poison. These guys have to be taught a lesson I say by the dips in cryptos as well as in precious metals the more we push the more desperate they become for there was no major news out there.
As a collector and long term holder, I am not worried in the least. I know there is uncertainty out there with a variety of different things (Bitcoin update on August 1st, Etherium scalability, regulation, etc.), but I see some of these dips as a buying opportunity. As long as you have the mindset that dips will happen and this may be a chance to load up on deals, then we will all be fine. My plan is to remain calm and ride it out.
I like the plan. I just heard of this August 1st business, however, any ideas out there about what the actual risk is there? Or is it another spot where it is just a dip & not an irreversible crash?
Just look at the history of Bitcoin - it's had many crashes of this magnitude. The last huge crash was back in 2013/2014 and led to a period of stability where the price settled at roughly $200-$300. Smart people acquired during this period.
I think essentially, the latest volatile speculation bubble has just popped, and we're going to see a slow descent until it evens out and remains stable at a lower price for a while. Before the next bubble ;) so buy up!
Ya- reminds me of 2014 dip. Sub $200 for a while. A terrific opportunity in retrospect. This dip may be similar in the long run.
I'm taking my btc offline for the transistion. I may leave 1 btc on but the rest goes into armory offline, or if i get it in time, the Ledger Nano S i ordered. Just to be safe. I don't think there's a consensus yet as to whether this will be a rocky hard fork or what they call a soft fork. I'm concerned but it could be a great time to buy near end of next month.
I'm older and came into crypto as a long term, high yield thing. I'm looking at 5 years, possibly 10 before pulling out. I did buy up more today as well. Just ether. I think we haven't seen btc drop yet. My guy says it's gonna drop pretty hard leading up to the end of July. Then? I buy even more of it. I have faith in the longrun even though i'm clearly in the red right now. Not very worried
All these shaky weak hands in the market.... :D
God damn this weak hands. I don't have cash anymore to buy from them!
Thanks for your analysis. There are definitely many opportunities to grab some great coins at a great rate!
My concern about this dip: Are Bitcoin Stop-Loss type functions being abused?